Spring is a time for renewal. It’s also a time for selling homes! The seasonal spring market is exceptionally robust here in Minnesota, and a great time to sell a home. But before most sellers enter the marketplace, they want to know the answers to these questions (and more!): How is the housing market actually performing? How does my city and neighborhood compare to overall Twin Cities market? Is this a good year to sell my home? What are the risks of waiting?
2020 ANNUAL HOUSING REPORT
Fortunately, real estate professionals in the Twin Cities have access to the best statistical analysis and reporting in the country through our professional association, the Minneapolis Area Association of Realtors (MAAR). Each year, MAAR puts out a year-end report to track the performance of the Twin Cities housing market on key metrics, including median price, monthly supply of inventory, and foreclosure rates. Best of all, these statistics break down by county and city, so that you can get a specific look at how your real estate sub-market is doing.VIEW ANNUAL REPORT
For 2019, the Twin Cities housing market continued its long-term recovery from the 2008-2012 Great Recession, fueled by historically low interest rates, a 50-year low in unemployment, and a stock market at all-time highs. Buyer activity was up significantly, and pending and closed sales were both up 1% over the year before. The only limitation to the market was, as in previous years, not enough new inventory to satisfy the market, tilting the supply-demand balance for another year in the favor of sellers. Median price rose 5.7% due to the low inventory and high demand environment, with sellers receiving on average 98% of list price.
In Edina, median price rose 19.3% from 2015 to 2019, capping off a very robust growth period in the highest demand suburb in Minnesota. Likewise, Minneapolis Southwest (+21%) and other western suburbs like Eden Prairie (+20%) have also continued to experience considerable price appreciation during that 4-year period. Edina sellers saw a 5.2% increase in median price from the year before, reflecting continued high demand for the Edina School District and premier Edina neighborhoods like Country Club and Minnehaha Woods.
2020 MARKET PREDICTIONS
The 2020 market began in early spring with an unprecedented global coronavirus pandemic, which quickly sank demand in March, and inventory in April. However, with buyers adapting to the new market conditions, continued historically low interest rates, and supply at an all-time low, the market is still a very strong seller’s market. After fiscal stimulus ends, the jury is out on how many temporary furloughs will turn into permanent layoffs and job losses. But we believe that Minnesota’s economy has the best chance in the country of roaring back to life, given its low infection rate, conservative mitigation strategy, and diverse economy, and expect the second half real estate market to continue its upward progression. Listings that are more prepped and staged for a virtual marketplace will do the best, which we explain in our recent article on What the Pandemic Means for Your Real Estate, along with the some real-life examples in the follow-up article on What the Pandemic Means for Your Real Estate II.
As always, if you have questions about your own home’s market value, or are looking for ways to spruce up your home for the highest return on the market, feels free to contact us for a free walkthrough!